Oct 23 (Reuters) - Nvidia
(NVDA.O) dominates the market for artificial intelligence computing chips. Now it is coming after Intel's longtime stronghold of personal computers.
Nvidia has quietly begun designing central processing units (CPUs) that would run Microsoft's
(MSFT.O) Windows operating system and use technology from Arm Holdings
(O9Ty.F), two people familiar with the matter told Reuters.
The AI chip giant's new pursuit is part of Microsoft's effort to help chip companies build Arm-based processors for Windows PCs. Microsoft's plans take aim at Apple, which has nearly doubled its market share in the three years since releasing its own Arm-based chips in-house for its Mac computers, according to preliminary third-quarter data from research firm IDC.
Advanced Micro Devices
(AMD.O) also plans to make chips for PCs with Arm technology, according to two people familiar with the matter.
Nvidia and AMD could sell PC chips as soon as 2025, one of the people familiar with the matter said. Nvidia and AMD would join Qualcomm
(QCOM.O), which has been making Arm-based chips for laptops since 2016. At an event on Tuesday that will be attended by Microsoft executives, including vice president of Windows and Devices Pavan Davuluri, Qualcomm plans to reveal more
details about a flagship chip that a team of ex-Apple engineers designed, according to a person familiar with the matter.
Nvidia shares rose 4.4% and Intel shares dropped 2.9% after the Reuters report on Nvidia's plans. Arm's shares were up 3.4%.
Nvidia spokesperson Ken Brown, AMD spokesperson Brandi Marina, Arm spokesperson Kristen Ray and Microsoft spokesperson Pete Wootton all declined to comment.
Nvidia, AMD and Qualcomm's efforts could shake up a PC industry that Intel long dominated but which is under increasing pressure from Apple
(AAPL.O). Apple's custom chips have given Mac computers better battery life and speedy performance that rivals chips that use more energy. Executives at Microsoft have observed how efficient Apple's Arm-based chips are, including with AI processing, and desire to attain similar performance, one of the sources said.